SUPR view – another set of great results for Tesco as life under CEO Dave Lewis continues to bare fruit
- Cost cutting and improving margins have boosted profitability
- LFL sales up 2.9%
- Continued strong performance from Booker (LFL+11%)
- Online grocery sales grew by 2.8% YOY
- Profit before tax up 28.8% to £1.6bn
- Group operating margin rises to 3.45%
- FY dividend of 5.77p – 97% up YOY and on target to to reach c2.0x EPS cover 2019/20
- Continued strengthening of balance sheet with fixed charge cover and total indebtedness/EBITDAR, have further improved since the end of the last financial year, from 2.7 to 3.2 times and from 3.3 to 2.8 times, respectively
- CEO Dave Lewis said Tesco, “had met the vast majority of our turnaround goals,” and were on target to meet all of the remaining ones in 2019/20
- Continuing program of store buybacks with 3 UK stores purchased in the period
